Management Accounting: Types, Methods, and Tools

Management Accounting

Contents
INTRODUCTION...........................................................................................................................................3
Task 1..........................................................................................................................................................3
P1 Management accounting and essential requirement of different types of management accounting....3
P2 Different methods uses in management accounting............................................................................4
M1 Benefits of management accounting system and their application....................................................5
D1 Evaluation of various system and reports integrated with organisation process.................................6
Task 2..........................................................................................................................................................6
P3 Cost calculation using appropriate techniques of analyses to prepare income....................................6
Task 3........................................................................................................................................................11
P4 Advantages and disadvantages of different planning tools...............................................................11
M3 Uses of different planning tools and their application.....................................................................13
Task 4........................................................................................................................................................13
P5 How organizations are using accounting system to respond financial problems..............................13
M4 How management accounting can lead organisation to sustainable success....................................16
D3. Evaluation of the ways planning tools respond appropriately to solve financial problems as to lead
sustainable success................................................................................................................................16
CONCLUSION.............................................................................................................................................16
REFERENCES..............................................................................................................................................17

INTRODUCTION
Management accounting, which is also commonly known as managerial accounting, is a
method that deals with financial data collection and involves authentic leadership of this detail.
This is used for strategic planning and decision-making by the inner managers and other
stakeholders. This study focused on the crucial role of management accounting in addressing an
organization's economic challenges (Bedford, 2015). This report based on the Innocent drinks
which is manufacturing company and deal into ice cream and juices. The study covers principles
such as accounting management systems, reporting structures, and costing methods that are
being used even more in the implementation of management documents. This also requires
management techniques with their strengths and budget management limitations. Furthermore,
financial issues that are overcome using processes and correct accounting methodology are
addressed so that enterprise can contribute to measurable development.
Task 1
P1 Management accounting and essential requirement of different types of management
accounting
In present period, management accounting has grown over time and its principles allow the
internally and externally stockholder to gain the valuable information about the business's results
within a year. As it is a structured method of capturing and retaining useful knowledge regarding
firm's success over brief amount of time.
Inventory management system: Inventory management system is a type of system that
monitors stock in factories and also checks the accessibility of raw resources, properties and so
on. This program is very beneficial to companies of all kinds, particularly those engaged in
designing. That is why it monitors the quality of material product as it goes into the
manufacturing system and monitors the commodity until it is sold. In summary it can be assumed
that this program assists in the control of the distribution chain. Innocent drink implements this
stock control program that will be of benefit to them as it solves the supply management issue.
Price optimization system: Price management program allows an enterprise to establish a
price range that is appropriate for both business and consumers alike. It includes of different
techniques that help to take into account different demand for goods and services by amount of